With all the current geo-political uncertainly, the Government’s announcements this week has highlighted the importance and value of our sector and provides a boost in confidence for our members. The news shared by UK Ministry of Defence on the SME Support Hub and Defence Innovation Unit marks a transformative moment for our sector. These initiatives will streamline access to MOD opportunities, accelerate technology pull-through, and ensure that SMEs—at the heart of UK innovation—can scale and contribute to national security.
For our members, this means greater visibility of defence requirements, faster procurement pathways, and enhanced collaboration opportunities and greater direct spend with SMEs. With the Defence Innovation Unit driving cutting-edge capabilities and the SME Hub fostering industrial growth, the UK’s defence ecosystem is set to become more agile, competitive, and resilient. These are both big wins for ADS members, through the work of our Defence SME Committee, these were key items that we have lobbied for in our Defence Industrial Strategy (DIS) submission and separate submission on ‘SME barriers that need addressing in the Defence Industrial Strategy’. The details of these announcements will be shared in the Spring statement and publication of the DIS
These announcements were timely, as ADS hosted MinDPI for two roundtables, one with SMEs and Mid-Tiers, and one with Primes. The roundtable offered an opportunity for members to feedback to the Minster on the recent announcements and discussion on topics ranging from how to drive innovation, how to break down barriers for SMEs in defence, and how to ensure growth of companies of all sizes. There was also discussion on the importance of building the narrative with the public on the importance of defence for our security and resilience, and the need to promote careers in defence.
This was then proceeded by supporting the Minister at the Defence Supply Chain Capability Programme (DSCCP) panel discussion on the key work that is being delivered on supply chain resilience and the importance of the task and finish group that I co-chair on ‘Market Engagement’ being embedded into Defence Operating Model.
Additionally, Kevin also gave evidence to the House of Commons Defence Select Committee on their inquiry into European Security, which is very timely and vitally important given the current geo-political context. The inquiry focuses on the UK’s contribution to European Security and opportunities for deeper collaboration. The evidence session also covered the current strength of UK industry, where we can learn from European partners, and how to build UK resilience.
Defence has certainly been elevated in the media and is now being recognised as a vital sector for our National Security, it has also provided the opportunity to highlight some of the key barriers we face and bring topics to the table that need addressing, including ESG rating and access to finance challenges. We very much welcome the open letter led by Alex Baker MP and signed by over 100 Labour parliamentarians urging British banks and fund managers to stop viewing all defence investments as “unethical” and encourage more investment into the sector. We will be continuing to progress this vital discussion with key political, finance and industry stakeholders in the coming weeks.
